Brad Whitaker, MSPH, CSP HSE Director BOS Solutions

HSE Management Systems What they are, how they work, and how to implement or improve your HSE Management System to successfully manage HSE in your organization Brad Whitaker, MSPH, CSP HSE Director BOS Solutions brad.whitaker@bos-solutions.com

HSE MS Presentation Plan Define what an HSE Management System (MS) is... HSE MS Essential Elements... How to create or better your own HSE MS... What HSE MS does... 2

HSE Responsibilities HSE Policy PTW SPCC Driving Safety Budget Monitoring HSE Team DOT Journey Hot Work Management PPE HSE Meetings Assessments Loss SBO Audits Reporting Waste Competency Disposal Risk Risk Assess Assess BBP COR ISO CPR Leadership Accountability Suppliers Vendors Accountability Mentors Cranes Heavy Equipment ERP Performance 3

Does your HSE job feel like... 4

HSE Systematic Management 5

HSE Management Systems Not a program but a process.... Company ABC Hazardous Communication Program 1. Written Program 2. Chemical Inventory 3. MSDS Management 4. Labeling 5. Training 6

HSE Management Systems HSE Management Systems (HSE MS) brings order to chaos. It gives a systematic process an organization needs to manage everything HSE related. It is the strategy implemented by an organization focusing critical resources for an organization s success. Needs to be customizable to fit your organization HSE needs. Everything HSE related fits in the HSE MS; if not, it is either inadequate or not needed. 7

Corrective, Preventive Actions Continuous Improvement. Common Elements of MS PLAN DO CHECK ACT Act Check Plan Do 8

Common Elements of MS ANSI Z10 H&S OHSAS 18001 H&S ISO 9001 (QMS) ISO 14001 EMS H&M EI H&S SEMS BSSE HSE HSG65 UK H&S ANSI Z10 OHSAS 18001 ISO 9001-2000 ISO 9001-1994 ISO 14001 Hearts and Minds SEMS HSG 65 3 Management Leadership and Employee Participation 4.2 OH&S Policy Clause 4 Quality Management System 4.1 Management Responsibility 4.1 General requirements 1 Leadership and Commitment 1 General Management Program Principles 1 Policy 3.1 Management Commitment 4.3.1 Planning for Hazard Identification, Risk Assessment and Risk Control Clause 5 Management Responsibility 4.2 Quality Systems 4.2 Environmental policy 2 Policy and Strategic Objectives 2 Safety and Environmental Information 2 Organising 3.1.1 Occupational Health and Safety Management System 4.3.2 Legal and Other Requirements Clause 6 Resource Management 4.3 Contract Review 4.3 Planning 3 Organisation, Responsibilities, Resources, Standards and Documentation 3 Hazard Analysis 3 Planning and implementing 3.1.2 OHS Policy 4.3.3 Objectives Clause 7 Product Realization 4.4 Design Control 4.3.1 Environmental aspects 4 Hazard and Effect Management 4 Management of Change 4 Measuring performance 3.1.3 Responsibility and Authority 4.3.4 OH&S Management Programs Clause 8 Measurement, Analysis, and Improvement 4.5 Documentation and Data Control 4.3.2 Legal and other requirements 5 Implementation & Monitoring 5 Operating Procedures 5 Reviewing Performance 3.2 Employee Participation 4.4.1 Structure and Responsibility 4.6 Purchasing 4.3.3 Objectives and targets 6 Audit 6 Safe Work Practices 6 Auditing 4 Planning 4.4.2 Training Awareness & Compliance 4.7 Control of Customer Supplied Product 4.3.4 Environmental management programs 7 Review 7 Training 4.1 Initial and Ongoing Reviews 4.4.3 Consultation and Communication 4.8 Product Identification and Tracebility 4.4 Implementation and operation 8 Quality Assurance/Mechanical Integrity 4.1.1 Initial Review 4.4.4 EMS Documentation 4.9 Process Control 4.4.1 Structure and responsibility 9 Pre-Startup Review 4.1.2 Ongoing Review 4.4.5 Document and Data Control 4.10 Control of Inspection, Measuring and Test Equipment 4.4.2 Training, awareness and competence 10 Emergency Response and Control 4.1.2.A Relevant business management systems 4.4.6 Operational Control 4.11 Inspection and Testing 4.4.3 Communication 11 Incident Investigation 4.1.2.B Hazards, risks, and controls 4.4.7 Emergency Preparedness & Response 4.12 Inspection and Test Status 4.4.4 Environmental management system documentation 12 SEMS Element Audit 4.1.2.C Resources 4.5.1 Performance Measurement and Monitoring 4.13 Control of Non-Conforming Product 4.4.5 Document control 13 Documentation and Recordkeeping 4.1.2.D Applicable regulations, standards, and other requirements 4.5.2 Accidents, Incidents, Nonconformances, Corrective and Preventive Action 4.14 Corrective and Preventive Action 4.4.6 Operational control 4.1.2.E Assessments 4.5.3 Records and Records Management 4.15 Handling, Storage, Packaging, Preservation and Delivery 4.4.7 Emergency preparedness and response 4.1.2.F other (note: contractor activities, maintenance, and non-routine) 4.5.4 Audit 4.16 Control of Quality Records 4.5 Checking and corrective action 4.2 Assessment and Prioritization 4.6 Management Review 4.17 Internal Quality Audits 4.5.1 Monitoring and measurement 4.3 Objectives 4.18 Training 4.5.2 Nonconformance and corrective and preventive action 4.4 Implementation Plans and Allocation of Resources 4.19 Servicing 4.5.3 Records 5 Implementation and Operation 4.20 Statistical Techniques 4.5.4 Environmental management system audit 5.1 OHSMS Operational Elements 4.6 Management review 5.1.1 Hierarchy or Controls 5.1.2 Design Review and Management of Change 5.1.3 Procurement 5.1.4 Contractors 5.1.5 Emergency Preparedness 5.2 Education, Training and Awareness 5.3 Communication 5.4 Document and Record Control Process 6 Evaluation and Corrective Action 6.1 Monitoring and Measurement 6.2 Incident Investigation 6.3 Audits 6.4 Corrective and Preventive Actions 6.5 Feedback to the Planning Process 7 Management Review 7.1 Management Review Process 7.2 Management Review Outcomes and Follow Up 9

Corrective, Preventive Actions Continuous Improvement. Corrective, Preventive Actions Continuous Improvement. Common Elements of MS PLAN DO Commitment, Commitment, Leadership Leadership Policy Policy & Objectives Haz Identification, Risk Assessment, Risk Control Haz Identification, Risk Assessment, Risk Control Regulatory/Legal requirements Regulatory/Legal HSE Programs requirements HSE Programs Orginazation Structure Organization Training, Structure Competence Documentation Record Keeping Training, Competence Emergency Preparedness Employee participation Act Plan CHECK Documentation Record Keeping Performance Measurement, Monitoring Emergency Loss Preparedness Event Reporting and Investigation Audit Performance Measurement, Monitoring Loss Event Reporting and Investigation Management Review Audit Check Do ACT Management Review Accountability 10

Leadership and Commitment (MS Element) Management Leadership Top management directs the organization to establish, implement and maintain an HSE Management System in conformance with the requirements of the organisation that is appropriate to the nature and scale of the company and its occupational health and safety risks. Top Management sets the vision and direction of the company. Signs off on the Company HSE Policy. Sets HSE expectations company. Provides the resources needed to meet the expectations. 11

Risk Management (MS Element) Risk Identification Risk Assessment Identify Risk control Control Monitor Risk Mgt Assess Evaluate 12

Risk Management Risk Identification What are your HSE Risks at your organization? Risk Registry Hazards we are exposed to Severity Likelihood Risk Safety Controls ascending/descending ladders ascending/dscending stairs cold extremes driving fatigue fire/flammables/combustibles H2S handling (pinch points) handling chemicals/hazardous substances heat extremes working at heights lifting mechanical lifting office safety (ergonomics) operating heavy machinery slips, trips, falls environmental spills using hand tools work in high noise areas working alone working in confined space working on electrical equipment working on pressurized equip working with contractors 13

SEVERITY Risk Management Risk Assessment How do you define Risk Impractical - Improbable - Rarely (1) Likelihood Probability Frequency Unlikely - Not Probable - Infrequent (2) Likely - Probable - Frequent (3) More Likely - More Probable More Frequent (4) Very Likely- Very Probable Very Frequent (5) Catastrophic (4) 4 8 12 16 20 Major (3) 3 6 9 12 15 Serious (2) 2 4 6 8 10 Minor (1) 1 2 3 4 5 14

Risk Management (Severity) 15

Risk Management Risk Assessment How do you define Risk SEVERITY Impractical - Improbable - Rarely (1) Likelihood Probability Frequency Unlikely - Not Probable - Infrequent (2) Likely - Probable - Frequent (3) More Likely - More Probable More Frequent (4) Very Likely- Very Probable Very Frequent (5) Catastrophic (4) 4 8 12 16 20 Major (3) 3 6 9 12 15 Serious (2) 2 4 6 8 10 Minor (1) 1 2 3 4 5 16

Risk Management Risk Control How we keep losses from happening Design Controls Engineering Controls Isolate, Barrier Substitution Policies Procedures Training Warnings Signs Protection for Head, Eye, Face, Body, Hand Foot, Lung, Ears, etc. 17

Corrective, Preventive Actions Continuous Improvement. Corrective, Preventive Actions Continuous Improvement. Common Elements of MS Commitment, Commitment, Leadership Leadership PLAN Policy & Objectives Policy Haz Identification, Haz Identification, Risk Assessment, Risk Assessment, Risk Control Risk Control Regulatory/Legal Regulatory/Legal requirements requirements DO HSE Programs HSE Programs Organization Orginazation Structure Structure Training, Competence Training, Competence Employee participation Documentation Record Keeping Act Plan Documentation Emergency Record Preparedness Keeping CHECK Emergency Preparedness Performance Performance Measurement, Measurement, Monitoring Monitoring Loss Event Reporting Loss Event and Reporting Investigation and Investigation Audit Audit Check Do ACT Management Management Review Review Accountability 18

Create or make your own HSE MS Step 1: Select HSE MS Step 2: Audit against it 19

CHECK DO PLAN ACT Create or make your own HSE MS ANSI Z10 ASSESSMENT Element Description ANSI Z10 Requirement (notes) Score (1-5) 3 Management Leadership and Employee Participation 3.5 3.1 Management Commitment 4.2 3.1.1 Occupational 4 Health and Planning Safety Management System Top management shall direct the organization to establish, implement and 2.38 4.1 4.1.1 4.1.2 Initial and Ongoing Reviews Initial Review Ongoing Review maintain an OHSMS in conformance with the requirements of this standard that is appropriate to the nature and scale of the organization and its occupational health and safety risks. 4 3.4-3.4 5.1 OHSMS Operational A. Elements The organization shall: Relevant business A. Establish management and implement systemsthe operational elements section, - defined in this 3.1.2 OHS Policy B. as applicable to the organization and its activities, achieve the objectives The organization's top management Hazards, risks, shall arising and establish controls from the a documented planning process occupational and 3 5.1.1 C. B. Integrate the operational elements into the management system Controls health and safety policy as Resources the foundation The for organization the OHSMS shall This implement policy shall and maintain a process for achieving feasible risk reduction based upon the following preferred order of controls 5 Hierarchy or 5.1.2 D. and Management of Change The organization shall establish and implement processes to identify, include a commitment to: Applicable regulations, appropriate standards, steps to prevent and other or otherwise health and control safety hazards requirements and reduce Design Review and take potential risks associated with: A. Protection Evaluation and and continual Corrective improvement Action A. New of employee processes health or operations This and section safety at the to 3: 6 defines design and for processes B. Effective employee participation requirements stage; services, 5 B. Changes to its existing operations, products, or suppliers. include: E. The process for design reviews and management of change shall A. Identification of tasks and related health and safety hazards; C. Conformance with the Assessments organization's (note: health check and Workers safety requirements; Comp. Compliance and B. Consideration of hazards management associated review. with status, human injury/illness factors C. Consideration of control measures (hierarchy of controls, 5.1.1) D. Compliance with applicable metrics, laws findings and D. regulations Review of incident of applicable investigations regulations, (include codes, near and misses), standards; audits, and and e. A determination of the appropriate scope and degree of the design review and management of change. monitoring and measurement. Inspections) 5 Implementation and Operation 2.7 3.1.3 Responsibility and Authority C. Injury, illness, and incident tracking; Top management shall provide leadership and assume overall responsibility D. Employee input; before introduction into the work environment. E. Occupational health assessment; and for: health and safety risks; and A. Implementing, maintaining and monitoring performance of the OHSMS F. B. Providing appropriate financial, human, and organizations resources to plan, implement, operate, check, other correct, (note: and contractor review the activities, OHSMS maintenance, manner. and non-routine) and control potential health and safety risks: 4.2 Assessment and Prioritization C. Defining roles, assigning responsibilities, establishing accountability, and 3.5 delegating authority to implement The organization operations. effective shall establish OHSMS for and continual implement a process to assess and improvement; and prioritize the OHSMS The process issues shall identified include appropriate in 4.1 performance criteria... contractor health and safety D. Integrating the OHSMS A. into Assess the organization's the impact on other health business and safety systems of OHSMS and issues and assess the for, and/or respond to emergencies, including: processes. Employees shall level assume of risk responsibility for identified for hazards aspects of health and emergencies safety rules and requirements. B. Establish priorities based on factors 2. such Area as supervision; the level of risk, potential for and C. Evaluating updating representatives. the plans and procedures as necessary. system improvements, standards, regulations, feasibility, and potential 3.2 Employee Participation The organization shall establish business and consequence implement processes to ensure effective participation in the OHSMS C. by Identify its employees underlying at all causes levels and of other organization, contributing factors related to system action processes to: Training including and Awareness those working closest deficiencies to the hazard The organization by: shall establish processes to: 5.2 Education, 4.3 Objectives The organization contractors shall establish and implement a process to set documented injury and illness; and A. Providing employees objectives, and employee quantified representatives where practical, with the based mechanisms, on issues that offer the greatest time, and resources necessary opportunity to participate for and OHSMS training in at improvement a as minimum, defined in the and the processes risk organization's reduction. of: OHSMS; The number and - Planning (4.0) content of objectives E. Ensure shall that be: trainers employees 1 are competent to train 4.4 Implementation 5.3 Communication Plans and Allocation - Implementation of Resources (5.0) and the management review The organization The shall: organization shall establish and implement processes to: OHSMS. - Evaluation, corrective, and A. Establish preventive and progress action implement with affected (6.0) a documented levels of implementation the organization; plan for achieving incidents, and hazards and risks; B. Providing employees, the and objectives. employee representatives, The plan(s) shall define with timely resources, access responsibilities, to A. Progress in the reduction of risk; control and reporting procedures; and information relevant to the timeframes, OHSMS; and intermediate D. Identify and steps, remove and barriers appropriate to all measurement of the above of progress; deficiencies C. Identifying and removing and deficiencies; obstacles or barriers to participation B. Assign resources to achieve the established objectives of the implement and effective F. OHSMS, Follow-up and 2) actions demonstrate from OHSMS or assess audits conformance and previous management reviews; with the requirements of G. this The standard. extent to The which process objectives shall require have that: been met; and implementation A. The plans. OHSMS identifies H. documents The performance that need of to the be controlled. OHSMS relative These to expectations, taking into consideration changing circumstances, resource needs, alignment of the documents shall be reviewed and updated as necessary, with dates of revision; 4 business plan and consistency with the Occupational Health BOS Solutions OSHA O&G Conf. HSE MS Presentation December and Safety policy. 2-3, 2014 and B. Documents, including records are legible, readily identifiable and 4 Planning 2.38 4.1 Initial and Ongoing Reviews 3.4 specific period< A. Evaluate the performance of the OHSMS through monitoring, measurement, assessment, incident investigations and audits; B. Take corrective action when non-conformance is found in the OHSMS; and 3 C. Include results of evaluation activities as part of the planning process and 6.1 Monitoring and Measurement The organization shall establish and implement processes to monitor and evaluate hazards, risks, and their controls to assess OHSMS performance. These processes shall include all or some of the following methods, depending on the nature and extent of identified hazards and risks: A. Workplace inspections and testing 5.1.3 Procurement The organization shall establish and implement processes to: B. Exposure assessment; A. Identify and evaluate the potential health and safety risks associated with 3 purchased products, raw materials, and other goods and related services B. Establish requirements F. for Other supplies, methods equipment, as required raw materials, by the organization`s and other OHSMS goods and related services purchased by organization to control potential 1 The results of these processes shall be communicated to relevant parties, with attention to applicable laws and regulations on medical confidentiality 6.2 Incident Investigation C. Ensure that purchased The products, organization raw materials, shall establish and other and goods implement and related processes to investigate and services conform to the organization's analyze reported health work-related and safety requirements. incidents in order to determine underlying OHSMS deficiencies and other factors that may be causing or contributing to the occurrence of incidents. The investigations shall be performed in a timely 5.1.4 Contractors The organization shall establish and implement processes to identify, evaluate A. To the organization's employees from contractors planned and unplanned activities, operations, and materials on the organization's premises; and, B. To the contractor's employees from the organization's activities and 6.3 Audits The organization shall establish and implement processes to: A. Conduct periodic audits to determine whether the organization has 5.1.5 Emergency Preparedness The organization shall establish and implement a process to prevent, prepare appropriately applied and effectively implemented OHSMS elements, including identifying hazards and controlling risks; A. Development of plans B. to Document prevent and and minimize communicate risks from audit potential results to: 1. Those responsible for corrective and preventive action; B. Periodic testing of the emergency plans through drills and similar activities; 0 3. Other affected individuals, including employees and employee 3 C. Immediately communicate situations identified in audits that could be expected to cause a fatality, serious injury, or illness in the immediate future, so that prompt corrective action under section 6.4 is taken. 6.4 Corrective and Preventive Actions The organization shall establish and implement corrective and preventative A. Address OHSMS deficiencies and inadequately controlled hazards; B. Identify any newly created hazards resulting from corrective and preventive A. Define and assess the actions OHSMS and competence evaluate needed the overall for employees risk reduction; and C. Expedite action on inadequately controlled hazards that could cause serious B. Ensure through appropriate education, training, or other methods that employees and contractors D. are Track aware actions of applicable taken to ensure OHSMS their requirements effective and implementation are competent to carry out their responsibilities as defined in the OHSMS; 0 3 C. Ensure effective access to, and remove barriers to participation in education 6.5 Feedback to the Planning Process D. Ensure that training is The provided organization in a language shall establish trainees understand; maintain processes to ensure that the results of monitoring and measurement, audits, incident investigation, and corrective and preventive actions are included in the ongoing planning process 7 Management Review This section defines the requirements for periodic management reviews of the A. Communicate information about the OHSMS and the implementation plan 7.1 Management Review Process The organization shall establish and implement a process for top management to review the OHSMS at least annually, and to recommend improvements to B. Achieve prompt employee reporting of work related injuries, illnesses, ensure its continued suitability, adequacy, and effectiveness. Inputs to the management review process shall include, among other information: 3 C. Encourage employees to make recommendations regarding possible hazard B. Effectiveness of processes to identify, assess, and prioritize risk and system C. Effectiveness in addressing underlying causes of risks and system 5.4 Document and Record Control Process The organization shall establish D. Input and from implement employees a process and employee to create and representatives; maintain documents and E. records Status specified of corrective by its and OHSMS preventive in order action to 1) items; accessible, protected against damage, deterioration, or loss, and retained for a 7.2 Management Review Outcomes and Follow Up At the conclusion of the review, top management shall determine the: A. Future direction of the OHSMS based on business strategies and conditions; 3-4 5 1 1.8 4 3 0 1 1 3 4 20

1 0 Create or make your own HSE MS 21

Create or make your own HSE MS Performance Monitoring Policies, Objectives Business Processes Commitment and Leadership Organization and Resources Risk Management Standards, Procedures, Plans 22

Implement your HSE MS Make the HSE MS the way you do business. Everything you do HSE related should fit in your HSE MS. If not it is either not needed or your HSE MS is inadequate. If implemented and followed correctly you will; PLAN your HSE needs DO what your HSE needs are CHECK to see it is in place ACT on areas to improve 23

What an HSE MS can do... The Safety Culture Ladder Increasingly informed CALCULATIVE we have systems in place to manage all hazards GENERATIVE (High Reliability Orgs.) HSE is how we do business round here PROACTIVE Safety leadership and values drive continuous improvement. REACTIVE Safety is important, we do a lot every time we have an accident PATHOLOGICAL who cares as long as we re not caught Increasing Trust/Accountability Hearts and minds Institute http://www.eimicrosites.org/heartsandminds/index.php 24

Injury or other Loss Rates HSE Evolution/Inverted Culture Ladder 10 8 6 4 2 Reactive HSE Safety is important, we do a lot every time we have an accident Calculative HSE We have systems in place to manage all hazards Proactive HSE Safety leadership and values drive continuous improvement Generative HSE HSE is how we do business around here 0 Hearts and minds Institute http://www.eimicrosites.org/heartsandminds/index.php Time 25

Injury/Loss Rates Keys to Generative HSE Basic HSE Controls Engineering and design Regulatory compliance Injury/Loss Reporting Basic HSE training Investigations Inspections/Maint. 8 6 4 2 PPE Signage Calculative HSE Advanced HSE Controls HSE Management System HSE Programs/Standards/Rules Pre-Job Risk Assessments (JRA s) Proactive reporting (haz ID and near hit) Competence (advanced training) Risk Management (risk acceptance) HSE Objectives and Results Monitoring Auditing plan Proactive HSE HSE Culture CI on ALL Controls Shared purpose and belief HSE Company Core Value Visible leadership Concentration on Leading Indicators Human Factors Behaviour Based Safety Stop the Job Accountability Generative HSE 0 Time 26

Q1-2009 Q3-2009 Q1-2010 Q3-2010 Jan-11 Mar-11 May-11 Jul-11 Sep-11 Nov-11 Jan-12 Mar-12 May-12 Jul-12 Sep-12 Nov-12 Jan-13 Mar-13 May-13 Jul-13 Sep-13 Oct-13 Dec-13 Feb-14 Apr-14 Jun-14 14-Aug Injury/Loss Rates What HSE MS can do (HSE Performance) 10 10 9 8 8 7 6 6 5 4 4 3 2 2 1 0 0 Reactive HSE Safety is important, we do a lot every time we have an accident Calculative HSE We have systems in place to manage all hazards Proactive HSE Safety leadership and values drive continuous improvement Time Generative HSE HSE 0.94 is how we do business 0.34 around here 0.00 27

What HSE MS can do (HSE Performance) Blue coverage indicates the performance of meeting objectives Meeting 100% of objective Meeting 80% of objective Meeting 60% of objective Meeting 40% of objective 28

Summary of HSE MS Act Check Plan Do Have Management commitment Decide HSE MS applicable to your organization Audit against it Create, Implement or enhance your HSE MS Live it! Make it the way your manage HSE at your organization 29

Questions Connect, share, inquire 30